Anyone have any advice whether I should consider buying a house? I'm pretty sure I've figured out-at least in San Antonio-that it is cheaper to buy a house than to rent. Also, I've heard about these special incentives that they are doing to get people who wouldn't normally consider buying a house (poor people like me) to buy. However, I'm only 20...and I'm in the military...
Any advice/comments?

 

If you want to get some money back instead of throwing it into rent by all means buy a house. But at 20 and in the military can you say for sure that you will be staying in town and be able to handle things if you ever deploy? I would say if you were sure you were going to stay in SA also then it would be a good thing to do. There's just a lot of things that you have to look into before buying a house. I know the military isn't exactly the greatest place to make a living, moneywise, either. Try talking to some other people on base that may have some homes to give you an idea of what you're up against. I know this might sound discouraging but there's a lot to look into since this will be one of the biggest decisions you'll ever have to make in your life. In any case good luck with whatever you decide to do, I'm sure you'll make the right decision no matter what.

 

Hey,
I have done FHA and Conv loans in the past. I am sure you are eligble to get a VA loan since your in the Military. Look for a loan that helps you avoid 1) down payments if you don't want one.
2) closing costs and origination fee's. 3) Fees for lawyers and surveying fees. Get pre-approved so a seller knows your a real buyer, he may be in a hurry to sell.
Look for a house with a 3-4 car garage and a lift for the Camaro!!!

 

Ive been looking to buy here for a few weeks now. My wife is millitary as well. We might be moving from here in 3-4 years, so we're looking to buy a house that we can do some simple fix ups such as carpet and paint, but that we can get cheap and make money on. We've found several HUD forclosures that were priced pretty low. There is one around the corner from where we're living now that needs only paint and carpet, is 10 years old, and has a very nice underground pool in the back yard Its priced very low for what it could be worth with simple repairs. It could probably sell for at least $25k more after a few years and some repairs. We decided against it though because its a 2 story, with the master bedroom downstairs. It would be a pain in the *** with our young son.

If you decide to look around, Ill give you the # of our realtor. She has been the best Ive talked to around. She looks for new homes on the market all the time, and sends links to info and pics to my email all the time.

 

Buying a house (versus renting) is not always a good move... I always hear people saying it's better to make house payments than throw money away for rent, but a lot of the time that's not true. For the 1st ~5 years you own the house, about 90% of each payment you make on it will be interest! So for every $1000 you pay on it, you're only getting $100 equity in it. After 5 years, you might have all of 6% equity in the house - since the realtors take 6% when the house sells (listing agent gets 3%, and the selling agent get 3%), that means you're break-even then, right? In most cases, no! Don't forget all the insurance (and any maintenance/repairs) that you've had to sink into it. Of course, if the property appreciates while you own it, you're in better shape... but don't get a house thinking that's a sure thing, though - chances are, it's value will only go up at a rate near inflation. Also keep in mind that once these low interest rates start going back up, the demand for homes will likely go down... maybe way down (harder to sell, maybe even a loss of value in some cases). Also, buying a 'fixer-upper' house (just like with a 'fixer car)' with the intent of saving money in the long run doesn't work out in most cases... if you haven't seen the movie 'money pit' and want a few laughs, it's worth checking out.

Anyway, to check the feasibility of home ownership, do a google search for a rent vs. buy calulator on the web... there are a lot of them on the internet, and it's a good way to start.

 

I am a loan officer for a mortgage bank in Austin. Just to let you know, there are tons of programs out there that can get you into a house for nearly "0" out of pocket expenses. Your best bet is to contact a mortgage company to see what you qualify for. Also I would suggest that you shop around. If you do get approved, don't just jump on the first deal that you are offered. I Have seen many greedy mortgage companies take advantage of first-time buyers.

 

I hated throwing money away in rent. I think it is a wise decesion to invest in a home. However, being young and in the military, I would definately look into your options wisely. You may want to consider a 3 or 5 year arm. They are set up at low interest rates for the term of the loan...3 or 5 years. Right now the 3 year is at like 3.8% and the 5 at 4.5%. If you are not sure if you'll be in S.A. town for a long period of time, that would be an option I would look into. My buddy bought a really nice town home for like $75,000. If you had a 3 year arm on a $75000 loan, your payment on the home would be $349 a month...and the rest is as followed: Your estimated monthly principal and interest payment is
$349

Your estimated monthly private mortgage insurance payment is $60

Your estimated monthly property tax payment is
$250

Homeowner's Association Dues $29

Your total estimated monthly payment is
$688
So, for a 3 bedroom and 2 bath pad, that's not too bad. However, at the end of those 3 years, you'll be given a rate at market price...most likely higher.

Now the other thing to consider, even though you won't be building that much equity in the house over a 3 year period, per se`...you will sell the home for a profit and you will be building valuable credit. Let's say at the end of 3 years, you have to move. And the market price for that home is $85000. You could:
A.) sell the house by owner and either have the buyer pay all closing costs or split them and make ~$8200 profit plus the $3200 in equity already built(~$90/month) to equal ~$11,400
B.) use a realtor, making it $85,000(.06)=$5100 and subtract that from the sale price of $85000 to make $4900 plus the equity you built in the home, which is ~90/month. So, when you add $3200 to the $4900 you will come out at ~$8140.

I don't think that is too bad. Just thought I'd put in my .02.

 

I just bought a house FHA, 5.65% fixed with 0 down. I actually made a couple hundred bucks. I had the seller pay 3% of the purchase price in closing costs, allow $500 in repair money, termite contract, and a 1 year home warranty. It was pretty nice, I put $500 down in escrow money but received a check for $729 at closing so I came out ahead $229.

I wanted a new house but didnt have the money for a down payment.I basically bought a $100,000 home with no money out of pocket. The only drawback I can see from this is the private mortgage insurance. Its $80 month and its got to be paid until you get 20% equity in the house.

 

A house in San Antonio will NOT appreciate $10k in 3 years...not a $75k house anyway...unless it was a fixer-upper and you did all the fixing.

If you just look at the monthly payment, it can be pretty attractive with today's low interest rates. But if you look at the bigger picture you are more than likely LOSING money if you live in a house less than approx 5-8 years. Not even looking at closing costs, etc....you are going to pay a realtor 6% (!!!) when you buy, and another 6% (!!!) when you sell. ($9k dollars total on a $75000 house).

My point is, unless you are saving at least $9k in rent over ther time you will be living in San Antonio, it's not worth it IMO.

 

You are only responsible to pay a realtor on the selling end, and you don't even need a realtor to sell the house. You can get a realtor to buy a house, because the cost of having the realtor is pushed on the seller. Most of the time, a single realtor will only make 3%, because it isn't their house they're selling. The absolute most you'll be out on realtor fees are $4500. And with how competitive the realestate market is, a lot of realtors are giving services at 5%. If they're selling your house and they bring the buyers they will receive the full commission. If they don't bring the buyers, then they get 2%. My point is, you are only responsible for a realtor on the selling end of the deal.

My advice is to go and see a mortage broker. They are extremely helpful. And the thing I like about them, is that they are straight shooters. They'll let you know right away what you should do and shouldn't do.

John

 

I find it odd that you post this since I negotiated my realtor fee down to 3% (repeat customer) when I bought my house 8 years ago. Maybe things have changed? How is a buyer's agent getting paid if the seller is paying for their own agent?

Talking to a mortgage broker is a good idea. Also since your in the military, see if they have any benefit that would help you with the sale of a house should you need to move on short notice.

Selling a house without a realtor is not a good idea, IMO.

 

The buyer should never pay their agent. The commission structure is done between the 2 brokers when the listing agent has the seller sign the listing agreement. So, when negotiating the listing agreement, they will come up with a percentage. Usually 6%, but can be lower. When the buying agent's clients are interested in the property, he/she will know right off hand what their commission is going to be. It can be 3% or lower. It is also advertised by the listing agent in the MLS. The MLS is a nationwide database made available to agents. That is how they research properties. When they pull up the properties the buying agents % will be listed there. So, the 2 agents will split the 6% fee, unless the selling agent is also your agent, therefore, earning him/her a full 6% commission.

You should never NEVER sign a agent/buyer agreement agreeing to pay them a commission. There should never be a buyers agent fee funded by the buyer...very unethical.

The reason I know this, is because my mother-in-law is a realestate agent here in Houston. Hope this helps.